Real estate securities

Philosophy and Process I Team

The objective of the Advantus Real Estate Securities strategy is to seek total return with the goal of building a portfolio of diversified real estate securities that will outperform the Dow Jones Wilshire Real Estate Securities Index (DJWRESI) with reasonable investment risk and maintain a position consistently in the top half of our peer universe.

We use a bottom-up approach, real estate investing experience, and a network of industry contacts and deal-makers to leverage investment opportunities in all parts of the real estate cycle. Since real estate largely operates in the private markets, informational advantages can create opportunity for outperformance in the portfolio.

Philosophy and Process I Team

Real estate investment philosophy

We believe:

• A disciplined process reduces volatility and captures complexity of the real estate market.
• A dual perspective with hands-on real estate experience and capital market expertise discerns value between markets.
• Significant alpha is generated stock-by-stock with intensive, fundamental bottom-up research. Consistent earnings growth is key.
• Identified risk is controlled risk. An ongoing, rigorous risk management overlay is required to control that risk.
• Consistency in results is achieved with experience, a long-term perspective, and insight into real estate cycles.

Real estate investment process

• Data synthesis and refining: Quantitative data and qualitative information is scrutinized through company and property visits.
• Research and analysis: In-depth, security specific analysis is performed with proprietary systems to process information into readily usable form.
• Security selection: Valuation measures and earnings expectations drive security pricing to buy/sell targets.
• Portfolio construction: A thesis, catalysts and tracking points for each security generate a dynamic holdings management process that reacts to changing pricing and data.
• Risk management: Attribution analytics, stylistic influences and weighting adjustments measure and manage appropriate risk.

Philosophy and Process I Team

Real estate team

Real estate equity portfolio managers
» Joseph Betlej, CFA
» Lowell Bolken, CFA

Real estate and structured finance research professionals
» Sean O’Connell, CFA
» David Schultz, CFA
» James Ziegler

Philosophy and Process I Team